Acct1501 Exam
THE UNIVERSITY OF NEW SOUTH WALES
School of Accounting
ACCT 1501: Accounting and Financial Management 1A
FINAL EXAMINATION PAPER SESSION 1, 2004
INCLUDES SOLUTIONS INCLUDES MARKERS’ REPORTS This is a three (3) hour paper. You have ten (10) minutes reading time. There are seven (7) questions. There are eight (8) pages, including this one. You must answer all parts of all questions. The questions are not of equal value. All answers must be written in blue or black ink. Show all relevant working.
This paper forms 60% of the assessment in this course. This paper may be retained by the candidate.
Do not turn the page until instructed by the examination supervisor.
1
QUESTION 1 Owners’ Equity
(10 marks)
HJK Financial Solutions Ltd. issued a prospectus on Friday, 5th March 2004. The prospectus outlined the details of its Initial Public Offer. The purpose of the issue is to provide HJK with the working capital to complete its research and development work to commercialise its new financial software and expand its existing products. A summary of key information is provided below: Summary: The prospectus is for the issue of 6,000,000 ordinary shares at $1.00 each to raise $6,000,000. Oversubscriptions of a further 1,000,000 ordinary shares at $1.00 each to raise a further $1,000,000 may be accepted. The minimum subscription to be raised pursuant to the prospectus is $5,000,000. No shares will be allotted or issued until the minimum subscription has been received. The sponsoring broker will be paid a fee of 4% of the amount subscribed (and accepted by the company). The following are the accounts under the heading Owners’ Equity and are taken from the consolidated Statement of Financial Position in the prospectus issued by HJK Financial Solutions Ltd. Owners’ Equity Consolidated 28th Feb 2004 $ 2,875,000 (18,557) 2,084,119 4,940,562
Share Capital Reserves Retained Profits Total Owners’ Equity
Required: (a) Using the information above record the
School of Accounting
ACCT 1501: Accounting and Financial Management 1A
FINAL EXAMINATION PAPER SESSION 1, 2004
INCLUDES SOLUTIONS INCLUDES MARKERS’ REPORTS This is a three (3) hour paper. You have ten (10) minutes reading time. There are seven (7) questions. There are eight (8) pages, including this one. You must answer all parts of all questions. The questions are not of equal value. All answers must be written in blue or black ink. Show all relevant working.
This paper forms 60% of the assessment in this course. This paper may be retained by the candidate.
Do not turn the page until instructed by the examination supervisor.
1
QUESTION 1 Owners’ Equity
(10 marks)
HJK Financial Solutions Ltd. issued a prospectus on Friday, 5th March 2004. The prospectus outlined the details of its Initial Public Offer. The purpose of the issue is to provide HJK with the working capital to complete its research and development work to commercialise its new financial software and expand its existing products. A summary of key information is provided below: Summary: The prospectus is for the issue of 6,000,000 ordinary shares at $1.00 each to raise $6,000,000. Oversubscriptions of a further 1,000,000 ordinary shares at $1.00 each to raise a further $1,000,000 may be accepted. The minimum subscription to be raised pursuant to the prospectus is $5,000,000. No shares will be allotted or issued until the minimum subscription has been received. The sponsoring broker will be paid a fee of 4% of the amount subscribed (and accepted by the company). The following are the accounts under the heading Owners’ Equity and are taken from the consolidated Statement of Financial Position in the prospectus issued by HJK Financial Solutions Ltd. Owners’ Equity Consolidated 28th Feb 2004 $ 2,875,000 (18,557) 2,084,119 4,940,562
Share Capital Reserves Retained Profits Total Owners’ Equity
Required: (a) Using the information above record the